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PT Solid Gold Berjangka | Australian Unemployment Drops as Jobs Surge; Currency Gains

01:33 21 March in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP
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Ekonomi Australia Tingkat Pengangguran, Uneployment Australia PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | This article from Bloomberg highlights the recent developments in the Australian economy, particularly in the labor market and its effects on currency and bond markets. Here’s a breakdown of the key points:

Australian Employment and Labor Market:

  • Employment Soared: In February, the Australian economy added 116,500 jobs, a substantial increase led by full-time positions. This was nearly three times higher than the expected gain of 40,000.
  • Unemployment Rate Dropped: The unemployment rate fell from 4.1% in January to 3.7% in February, indicating a strong labor market.
  • Resilience to Monetary Policy: Despite restrictive monetary policy, the labor market showed resilience, with significant job additions and a decrease in the unemployment rate.
  • Annual Jobs Growth: Although annual jobs growth cooled to 3.2% in February from 3.5% a year earlier, it still reflects a healthy rate of employment expansion.
  • RBA’s Assessment: The Reserve Bank of Australia (RBA) considers the labor market to be “still a bit tight,” suggesting that employment growth is likely to slow in the future.

Market Responses:

  • Currency: The Australian dollar rose by as much as 0.4% to 66.15 US cents following the positive jobs data.
  • Bond Yields: Yields on the three-year government bond, which are sensitive to monetary policy changes, climbed to 3.68%.
  • Interest Rate Expectations: Traders reduced their bets on an interest rate reduction in August from 80% to 60% following the strong jobs report.

RBA’s Monetary Policy and Inflation:

  • Key Interest Rate: The RBA recently held its key interest rate at a 12-year high of 4.35%, waiting for more data to determine the economy’s trajectory.
  • Policy Debate: The RBA’s decision to abandon a hiking bias comes after it raised rates by 4.25 percentage points between May 2022 and November 2023 to control rising consumer prices.
  • Inflation: Inflation has been gradually cooling, and economists expect first-quarter inflation to be lower than the 4.1% recorded in the final quarter of 2023. The RBA forecasts show inflation returning to its 2-3% target by late 2025.

Future Outlook:

  • RBA Forecasts: The RBA expects employment growth to slow, which could lead to a rise in the jobless rate to 4.4% by mid-2025.
  • Updated Forecasts: The central bank plans to publish updated economic forecasts in May, which will likely provide more insight into future monetary policy decisions.

This information indicates a positive turn in Australia’s labor market, with strong job creation and a declining unemployment rate. The market responses, such as the rise in the Australian dollar and bond yields, suggest confidence in the economy’s resilience despite restrictive monetary policies.